Last week’s fight to control Bitcoin Cash turned out to be quite expensive for investors who lost billions daily. The contentious BCH hard fork caught the attention of the mainstream media last week as two competing software development teams failed to agree the best way to update the code leading to the split.
It’s the main reason why the crypto market saw bleeding for the second consecutive month.
Still Fallout Ramifications From The BCH Clash
The two camps in the middle of the fight have been ramping up the amount of computing power they own so that they can support their software version to win the race called the Nakamoto Consensus. The camp with the most computing support wins and as it stands the ABC camp is in control.
According to research conducted by BitMex, the two groups ABC and SV are losing around $700,000 a day on expenses like power to run the mining rigs that compete to process transactions.
Also according to Jimmy Song, a bitcoin core developer, they are also losing an additional $1 million a day in lost opportunity cost by not having their computers mine BTC.
Six days on and the battle continues as each camp has pledged to keep going until they win the so-called Hash War. Currently, ABC is in the lead according to tracker Coin Dance, but the balance of power could still shift.
According to Lex Sokolin of Autonomous Research based in London:
“Imagine a management takeover in a $100 billion company, which you could effect by directing your resources. There is prestige, reputation, and power that comes with being the main party responsible for deciding the vision and feature set of the future of money.”
The ultimate winner will be able to make changes to the software that will benefit them like figuring out how to mine coins more efficiently. Other benefits include being able to attract better developers and having more miners join its pool.
Whoever gains control will have a significant influence on the related coin’s price.
Roger Ver leads ABC and is backed by Bitmain while SV (Satoshi Vision) is led by Calvin Ayre and Craig Wright who once claimed to be Satoshi Nakamoto.
Meanwhile, the fight has proved costly for investors as Bitcoin Cash has lost over $400 in value in just a few days.